SBC Drops Broadband Prices For New Customers

SBC Communications Inc. on Thursday said it would lower the price of its high-speed Internet service for new customers.

Starting on Monday, new subscribers can get the SBC Yahoo! DSL service for $19.95 a month, providing they sign a one-year contract and also subscribe to SBC's unlimited local and long distance calling plan, the San Antonio, Texas, telephone company said. The non-promotion fee for the SBC broadband service is $26.95 a month.

The telephone service, which includes caller ID, voicemail and the choice of two other calling features, costs $48.95 a month. The high-speed Internet service delivers download speeds from 384 Kbps to 1.5 Mbps, and upload speeds of up to 384 Kbps.

SBC, the nation's second largest phone company, is following the trend among phone companies to cut prices for broadband and other services in order to compete with cable companies and Internet-calling companies. Unlimited local and long-distance calling over the Internet are available for less than $20 a month.

SBC has 4.7 million DSL subscribers, and expects to have more than 5 million by the end of the year.